Hicks: Chinese box office sales will eclipse the U.S. in seven years

I think we now know why producers changed the enemy in the new "Red Dawn" remake from Chinese to North Koreans.

Within seven years, China will eclipse the United States in box office revenue, according to a study by accounting firm Ernst & Young reported Thursday's Los Angeles Times.

China's domestic media and entertainment industry is expected to grow at an average 17 percent annual rate through 2015, exceeding the country's overall economic growth, according to the study, released at a conference hosted by the accounting firm in Shanghai. China currently has the second largest film revenue.

According to Studio Briefing, the report also said the Chinese entertainment industry faces numerous obstacles, including domestic piracy so pervasive that Chinese consumers expect to pay little or nothing for content. Government restrictions will also limit participation by domestic or foreign private companies.

In a statement, Ernst & Young's John Nendick said: "The challenges for media and entertainment companies to penetrate China are still considerable; however, the vast potential of the market makes it impossible to ignore."